Trump suggests that the U.S. government could acquire TikTok.

President Donald Trump recently decided to postpone the TikTok ban in the United States, stating that he was willing to "negotiate a solution" to keep the popular app in the country. Trump has recently suggested an option that involves the U.S. government purchasing TikTok. In a new executive order issued, he proposed the creation of a sovereign fund, assigning the new Treasury Secretary, Scott Bessent, and the nominated Commerce Secretary, Howard Lutnick, to develop a plan for its establishment within 90 days.

This fund would be intended to include recommendations on funding mechanisms, investment strategies, fund structure, and governance models. Sovereign funds owned by the government seek to accumulate wealth through investments in foreign and domestic assets, such as stocks, bonds, and real estate, with the goal of adding revenue to the government budget. This would imply that if a sovereign fund is established in the U.S., the government could acquire a substantial stake in TikTok.

Trump mentioned TikTok as an example of a company in which it could invest through the sovereign fund. The previous administration, led by Biden, had banned the app in the country, arguing that TikTok was a tool of Chinese surveillance and propaganda. This meant that the app could not operate unless its parent company, ByteDance, sold it to an entity deemed friendly by the U.S. government.

The former president commented, "We could do something with TikTok, or maybe not. If we do the right deal, we will; otherwise, we won't. But I have the right to do it, and we could include it in the sovereign fund." Trump also indicated that U.S. companies like Microsoft and Oracle could be potential partners in this purchase, highlighting that there is a "great interest" in TikTok from potential buyers.

If Trump seeks to use this proposed fund to acquire TikTok's operations in the U.S., he will need to act quickly. The suspension of the app's ban will be lifted 75 days after Trump's inauguration, meaning any sale needs to be negotiated before April 5. While Bessent has expressed his intention to have the fund operational within a year, that could be too late regarding the TikTok ban's delay.

Nevertheless, the creation of a sovereign fund entails many uncertainties, especially concerning funding. Trump had proposed that it be financed through tariffs and other "smart things." Recently, he announced tariffs on trading partners like Mexico, Canada, and China, although the former two have been temporarily suspended.

Unlike other countries like Singapore, Norway, and the United Arab Emirates that have sovereign funds funded from surpluses, the U.S. has been in deficit since 2002, with a national debt reaching $710.9 billion. Still, some speculate that billionaire Elon Musk could be involved in managing the potential fund, a plausible idea given the former president's connection with Musk.

This sovereign fund could allow the U.S. government to invest not only in TikTok but also in major tech companies like Tesla, Amazon, and Meta, providing significant relief to tech moguls looking to ally with Trump.